Simple Interest – Fractional year at a given rate: At 8.5% per annum simple interest, how much interest will a principal of ₹ 5,800 earn in 2 years 3 months (i.e., 2.25 years)?

Introduction / Context:
Simple interest over fractional years uses the same formula with time expressed in years (including quarters or months as fractions).

Given Data / Assumptions:

• P = ₹ 5800
• r = 8.5% per annum
• t = 2 years 3 months = 2.25 years

Concept / Approach:
Use I = P * r * t with r in decimal per year and t in years.

Step-by-Step Solution:
I = 5800 * 0.085 * 2.25I = 5800 * 0.19125 = 1109.25Nearest rupee per options = ₹ 1109

Verification / Alternative check:
Direct month-based calculation (27 months): I = 5800 * 8.5% * (27/12) = same result.

Why Other Options Are Wrong:
₹ 1300 and ₹ 1509 are overestimates; ₹ 1725 assumes a larger rate or time.

Common Pitfalls:
Using 2.3 years instead of 2.25; forgetting to convert percent to decimal.

Final Answer:
₹ 1109